Vĩnh Hoàn’s profit fall to lowest in over 30 quarters

Workers process pangasius for export. — Photo vinhhoan.com

HÀ NỘI — Vĩnh Hoàn Corporation (VHC), one of Việt Nam’s leading pangasius exporters, has reported declines in both revenue and profit in the last quarter of 2023.

In its fourth quarter business results, the company’s net revenue fell slightly by 4.7 per cent year-on-year to nearly VNĐ 2.4 trillion (US$97.4 million). 

Revenue decreased while cost of goods sold increased by 10 per cent, causing Vĩnh Hoàn’s gross profit to drop from VNĐ476.2 billion to VNĐ195.2 billion. Gross profit margin decreased from 19 per cent to just 8 per cent.

After deducting all expenses, the company earned more than VNĐ66.3 billion in profit after tax in the fourth quarter, down 66.5 per cent from the same period last year. This is the lowest quarterly profit of this pangasius business since the third quarter of 2015.

The company explained that the poor performance was due to declining sales volume and selling prices. 

For the whole year, the company’s net revenue reached over VNĐ10 trillion, down 24.1 per cent on-year, while profit after tax stumbled by 52.8 per cent to VNĐ949.6 billion.

As of the end of December, the company’s total assets increased slightly compared to the beginning of the year to VNĐ11.8 trillion, of which short-term assets accounted for 65 per cent. The business’s cash amount decreased by VNĐ310 billion from the beginning of the year to VNĐ237 billion. Inventories increased by 28 per cent to VNĐ3.6 trillion.

The pangasius exporter has short-term financial investments of nearly VNĐ2.1 trillion, mainly term deposits worth over VNĐ1.9 trillion.

It also invests VNĐ181 billion in securities, but making a provision for devaluation of nearly VNĐ38 billion, equivalent to a loss of nearly 22 per cent. Most of Vĩnh Hoàn’s stock investments, including Nam Long Investment Corporation (NLG), Đất Xanh Real Estate Services JSC (DXS) and Kinh Bắc City Group (KBC), witnessed losses.

Regarding capital structure, as of the end of the fourth quarter of 2023, the company still had nearly VNĐ6.2 trillion in undistributed profit after tax, accounting for more than 72 per cent of the enterprise’s equity. — VNS